Wednesday, February 6, 2019 / by Miranda Klaproth
As we transition from one year to the next, we peek inside the crystal ball to predict what the future may hold. What can you expect from the national housing market in 2019? According to Realtor.com, here’s a look at the national housing market forecast every current and future homeowner should know:
2019 National Housing Market Forecast
- Home price growth will continue to slow, with a forecasted increase of 2.2 percent
- Inventory increases will remain moderate with less than a 7 percent increase
- High-priced markets will buck the trend, with double-digit inventory gains
- Millennials will account for 45 percent of mortgages in 2019 vs. 17 percent for Boomers
- New tax plan will be good for renters, mixed for homeowners
- Mortgage rates will average 5.3 percent throughout the year and reach 5.5 percent by year end
- Single-family home housing starts will increase by around 8 percent
With higher interest rates and home prices forecasted for the new year, buying a home is only going to get costlier in 2019. In specific, first-time buyers should think about what they are willing to give up…distance to downtown? Certain amenities? Smaller home? By compromising and giving up certain items on their wish list, first-time homebuyers will be able to find a home within their budget.
A seller’s market looks to continue in 2019. However, sellers do need to keep in mind that the rising inventory will increase their competition. With that in mind, sellers should know their home will likely sit on the market longer and receive fewer offers than it would have in 2018. This is especially true for buyers in the higher-end market as that is where inventory is supposed to increase the most.
Austin market forecast
Forecasters predict the Austin-Round Rock area will experience a 4 percent decline in home sales and a 3.7 percent increase in home price.
Do you have any questions about the Austin-area housing market? Are you thinking about buying or selling in 2019? Call us today to discuss your real estate goals for the new year!